If you want to monetize your market sentiment while hedging market prices with additional interest, you should take a look into Gate.io’s Dual Currency product. This article will help you better understand all the mechanisms to make the most of our product and benefit from it, starting from the basics and then analyzing the pros and cons.
A dual currency product (or dual currency investment) is, as its name suggests, a short-term investment product that uses two different cryptocurrencies. It is a non-principal protected wealth management product with a floating return, meaning that the returns change according to established benchmarks known as “linked prices.”
Dual Investment offers you the chance to purchase or sell cryptocurrencies at the price and time of your choosing in the future while still receiving a high-interest income regardless of how the market performs.
So in short, it allows you to deposit a cryptocurrency and earn a yield based on two assets. Commit your crypto assets, lock in a yield and earn value if your committed assets’ value increases. The return you get depends upon the outcome of your bet at the expiry date.
The value of assets is constantly fluctuating in the crypto market. By choosing a certain product with the intent of hitting the predetermined benchmark for a profit in one of the product’s currencies, a subscriber can take advantage of this behavior while using a Dual Currency product. Additionally, the returns would differ and be in a different currency if the benchmark were missed.
For instance, the Settlement Currency for a BTC dual currency goods purchased with BTC might either be BTC or USDT, subject to the Settlement Price. You will receive the return in USDT if the Settlement Price is higher than the Linked Price; in the event that it is lower than the Linked Price, you will receive it in BTC.
Note: Once the subscription is initiated, the investor cannot cancel or initiate early redemption until the maturity date.
Here are some use case scenarios for you:
You must comprehend a few terms before we look at some examples.
Like any other financial instrument, dual investment also has its pros and cons. It can be a double-edged sword, so before investing, fully understand its potential, but also its risks. Once you are familiar with them, you will be ready to use the dual currency product! Let’s recap the pros and cons in the list below.
In conclusion, this is an interesting product that lets investors earn interest while taking risks they feel comfortable with.
The emergence of the dual currency product has opened up crypto markets for the world to invest in. As it attracts more investors, the concept of dual currency investment is fairly practiced by all major exchanges.
If you are looking for a product that allows you to earn passive income and high interest rates, while being able to choose variable time ranges (short periods / long periods), this product is definitely for you.
To view the Dual Currency Product page, log in to Gate.io, hover your cursor over “Earn” in the navigation bar and click “Dual Currency Product”, as follows:
Now you can see the list of Dual Currency Products with product details. You can choose between BTC and ETH sections (and also a Recommended section made for you). Select a product by clicking on “Purchase”: